Textbook Notes (362,802)
Canada (158,054)
Commerce (1,633)
Chapter 9

Chapter 9 Textbook Notes.docx

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McMaster University
Stephen Charko

Chapter 9: Product and Service Strategies • Product: bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs o Service: intangible task that satisfies the needs of consumer and business users o Good: tangible products that customers can see, hear, smell, taste, or touch o Goods-Services Continuum: spectrum along which goods and services fall according to their attributes, from pure good to pure service • Services can be distinguished from goods in several ways: 1. Services are intangible 1. Services are inseparable from the service providers 1. Services are perishable 1. Companies cannot easily standardized services 1. Buyers often play important roles in the creation and distribution of services 1. Service standards show wide variations Classifying Goods and Services for Consumer and Business Markets… • Business-to-Business (B2B) Product: product that contributes directly or indirectly to the output of other products for resale; also called industrial or organizational product • Types of Consumer Products: o Unsought Products: products marketed to consumers who may not yet recognize a need for them • Pre-need funeral plans • Long-term health care • Remedial math programs o Convenience Products: goods and services that consumers want to purchase frequently, immediately, and with minimal effort • Further subdivided into:  Impulse Goods and Services: products purchased on the spur of the moment  Staples: convenience goods and services that consumers constantly replenish to maintain a ready inventory  Emergency Goods and Services: products bought in response to unexpected and urgent needs o Shopping Products: products that consumers purchase after comparing competing offerings o Specialty Products: products that offer unique characteristics that cause buyers to prize those particular brands • Classifying Consumer Services: i. What is the nature of the service? i. What type of relationship does the service organization have with its customers? i. How much flexibility is there for customization and judgement on the part of the service provider? ii. Do demand and supply for the service fluctuate? i. How is the service delivered? • Types of Business Products: o Installations: business products like factories, assembly lines, and huge machinery that are major capital investments o Accessory Equipment: capital items like desktop computers and printers that typically cost less and last for shorter periods of time than installations o Component Parts and Materials: finished business products of one producer that become part of the final products of another producer o Raw Materials: natural resources such as farm products, coal, copper, or lumber, which become part of a final product o Supplies: regular expenses that a firm incurs in its daily operations •
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